Military Families Taxed by High Cost of Elderly Care, First Command
Reports

First Command Financial Behavior Index® reveals that one third of
middle-class servicemembers are providing care to an elderly family
member

October 27, 2014 10:59 AM Eastern Time

FORT WORTH, Texas--(EON: Enhanced Online News)--The aging of America has become a financial reality for the nation’s
career military, where middle-class families are significantly more
likely than their civilian counterparts to care for a parent or other
elderly family member – and they are spending more dollars than they
expected to provide that care.

“America’s career military are deeply concerned about caring for a
parent or other aging family member, and many of them are finding that
they are not adequately prepared for the high cost of that care”

The First Command Financial Behaviors Index® reveals that 33 percent of
middle-class military families (senior NCOs and commissioned officers in
pay grades E-6 and above with household incomes of at least $50,000) are
currently providing elderly care. That’s up significantly from 13
percent in 2012. In contrast, just 12 percent of general population
families are currently providing elderly care, statistically unchanged
from 2012.

Military families are currently or anticipate providing care in a
variety of settings, most commonly in the home (56 percent in their own
home and 46 percent in the elderly person’s home). Many respondents
expect to provide care by paying for:

home care services (28 percent)

nursing home care (7 percent)

health care services (8 percent)

The cost of providing this care is proving to be sizable for many
families. Survey respondents who say the cost of care is more than they
expected totaled 52 percent for military families and 35 percent for the
general population. When asked to estimate their average monthly cost
for the care of a parent or other elderly family member, military
respondents pegged it at $1,467 and members of the general population
said $940.

“America’s career military are deeply concerned about caring for a
parent or other aging family member, and many of them are finding that
they are not adequately prepared for the high cost of that care,” said
Scott Spiker, CEO of First Command Financial Services, Inc. “Military
families are taking on caregiver roles at a growing rate and finding
that the economic reality of this new responsibility is more taxing than
they expected. These findings underscore the importance of seeking out
meaningful financial planning support in advance of taking on the added
responsibility and expense of caring for an older family member.”

The majority of middle-class military families are now seeking out
specific financial planning related to the cost of care. The Index
reveals that 67 percent are planning for these costs, up from just 16
percent in 2012. And half of those families are engaging with a
financial advisor. The trend has remained essentially flat in the
general population, where just 14 percent of respondents are seeking out
planning services related to the cost of elderly care. One in four are
using a financial advisor.

Roughly one in five middle-class families say they anticipate providing
elderly care in the future.

About the First Command Financial Behaviors Index®

Compiled by Sentient Decision Science, Inc., the First Command Financial
Behaviors Index® assesses trends among the American public’s
financial behaviors, attitudes and intentions through a monthly survey
of approximately 530 U.S. consumers aged 25 to 70 with annual household
incomes of at least $50,000. Results are reported quarterly. The margin
of error is +/- 4.3 percent with a 95 percent level of confidence. www.firstcommand.com/research

About Sentient Decision Science, Inc.

Sentient Decision Science was commissioned by First Command to compile
the Financial Behaviors Index®. SDS is a behavioral science and
consumer psychology consulting firm with special vertical expertise
within the financial services industry. SDS specializes in advanced
research methods and statistical analysis of behavioral and attitudinal
data.

About First Command

First Command Financial Services and its subsidiaries, including First
Command Bank and First Command Financial Planning, assist American
families in their efforts to build wealth, reduce debt and pursue their
lifetime financial goals and dreams—focusing on consumer behavior as the
first and most powerful determinant of results. Through knowledgeable
advice and coaching of the financial behaviors conducive to success,
First Command Financial Advisors have built trustworthy, lasting
relationships with hundreds of thousands of client families since 1958.

First Command Financial Services, Inc., is the parent of First
Command Financial Planning, Inc. (Member SIPC, FINRA),
First Command Insurance Services, Inc. and First Command Bank. Financial
planning services and investment products, including securities, are
offered by First Command Financial Planning, Inc. Insurance products
and services are offered by First Command Insurance Services, Inc., in
all states except Montana, where as required by law, insurance products
and services are offered by First Command Financial Services, Inc. (a
separate Montana domestic corporation). Banking products and services
are offered by First Command Bank. In certain states, as required by
law, First Command Insurance Services, Inc. does business as a separate
domestic corporation. Securities products are not FDIC insured, have no
bank guarantee and may lose value. A financial plan, by itself, cannot
assure that retirement or other financial goals will be met. First
Command Educational Foundation is a 501(c)(3) public charity. It is not
affiliated with First Command Financial Services, Inc., or any of its
affiliated entities.

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